The Bank of England’s deputy governor for monetary policy says energy and supply-chain shocks, not the rise in household balances driven by pandemic-era support, have been the main cause of the inflation that has been plaguing the UK.
Speaking at the National Institute of Economic and Social Research, Ben Broadbent examined whether the current inflation crisis is a result of the 2020 growth in the “broad money supply”, which is predominantly made up of funds held in commercial banks, plus cash in circulation.
